v3.26.3
Income taxes
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income taxes
NOTE 9 — Income taxes

The following table outlines our pre-tax net (loss) income and income tax amounts:
Three months ended September 30,Nine months ended September 30,
In thousands2026202520262025
(Loss) income before income taxes$(5,790)$(21,614)$39,348 $(44,835)
(Benefit) provision for income taxes(1,177)17,635 14,929 (76,651)
Effective tax rate20.3 %(81.6)%37.9 %171.0 %

The provision (benefit) for income taxes is calculated by applying the projected annual effective tax rate for the year to the current period's income or loss before tax, adjusted for the tax effects of any significant or unusual items (discrete events) and changes in tax laws.

The benefit for income taxes for the three months ended September 30, 2026, was primarily driven by pre-tax book loss, the generation of research and development tax credits, excess tax benefits related to share-based compensation, and the release of valuation allowances on capital loss carryforwards associated with the transfer of our Montana and South Dakota publications as part of the Lee Transactions, partially offset by the global intangible low-taxed income inclusion and an increase in valuation allowances related to disallowed U.S. interest expense. The benefit was calculated using an estimated annual effective tax rate of 41.6%. The estimated annual effective tax rate before discrete items was principally impacted by the projected full year pre-tax book income and the global intangible low-taxed income inclusion, partially offset by the generation of the research and development tax credits and the release of valuation allowances on capital loss carryforwards associated with the transfer of our Montana and South Dakota publications as part of the Lee Transactions. The estimated annual effective tax rate is based on the projected tax expense for the full year.

The provision for income taxes for the nine months ended September 30, 2026, was primarily driven by pre-tax book income, the global intangible low-tax income inclusion, and an increase in valuation allowances related to disallowed U.S. interest expense, partially offset by the generation of research and development tax credits, the excess tax benefits related to share-based compensation and the release of valuation allowances on capital loss carryforwards associated with the transfer of our Montana and South Dakota publications as part of the Lee Transactions.

The total amount of unrecognized tax benefits that, if recognized, may impact the effective tax rate was approximately $46.3 million as of September 30, 2026 and $46.0 million as of December 31, 2025. It is reasonably possible that further adjustments to our unrecognized tax benefits may be made within the next twelve months as a result of audit settlements, judicial proceedings, lapses of statutes of limitations, or regulatory developments. At this time, an estimate of the potential change to the amount of unrecognized tax benefits cannot be made.

The Company recognizes interest and penalties related to tax matters, including unrecognized tax benefit, as a component of income tax expense. As of each of September 30, 2026 and December 31, 2025, the amount of accrued interest and penalties payable related to uncertain tax positions was immaterial.

The provision for income taxes for the three months ended September 30, 2025, was primarily driven by a decrease in the estimated annual effective tax rate, resulting from a decrease in the change in valuation allowance due to U.S. tax legislation
changes on the business interest expense limitation. The provision was calculated using an estimated annual effective tax rate of 172.8%.

The benefit for income taxes for the nine months ended September 30, 2025, was primarily driven by the pre-tax book loss, partially offset by the decrease in valuation allowances on non-deductible U.S. interest expense carryforwards and the global intangible low-taxed income inclusion.